Ahhh yes the salad days of borrowing. You walked into the bank, presented your package, and a few days later you received loan documents and you were done. What could be easier than DIY borrowing?
Post 2008 melt down the salad days are gone and now you must really work at figuring out the new lending paradigm. Well what is the new lending paradigm? In one short answer this is the time of specialized lending. Yes there is still lending taking place and yes it is highly specialized. So now what?
I just recently had a conversation with a friend on what it is really like in the world of corporate finance. Fifteen years ago the BHCL annual budget was comprised of just a few lenders and partners who wanted to put money out in a vast array of places, products and industries.
Today the BHCL annual budget is comprised of literally dozens upon dozens of financing partners, institutions, regulated and semi-regulated lenders, insurance companies, hard money lenders, cash flow lenders, leasing companies, asset based lenders, private resources and factoring and contract lenders that provide money only for certain special types of transactions which even then are more highly defined than ever before. This is specialized lending.
We now have 97 resources that provide capital as well as BHCL. All of them focusing on a specific structure individual to them. This is the new lending paradigm. This is specialized lending. Sounds complicated? That answer is simple too. Yes!
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Banks Are Going Away
The bank branch is going away. The loan officer with a lending limit is going away. Bank lending is going away. This new industry of specialized lending was borne out of an opportunity formed by the absence of bank lending and the abundance of capital waiting on the sidelines. This new breed of lender is smart and focused. They move quickly and know what they can and can’t do. They set their boundaries firmly and without flexibility.
The long and the short of it is you must know the landscape. You must know who is who and what is what. And no you cannot be expected to know all this and run your business without help from a source like BHCL. DIY borrowing no longer works. It is complicated and it changes all the time. BHCL knows the players and knows the rules of the road.